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URL:  http://boards.fool.com/blsh-would-love-to-hear-robs-and-tmfthumps-take-30843264.aspx

Subject:  Re: Ford Fusion Output Boost Date:  8/26/2013  5:16 PM
Author:  TMFThump Number:  17749 of 18055

blsh

Would love to hear Rob's and TMFThump's take on it.

I'm all for it. The Flat Rock plant was recently purchased outright from Mazda. Previously it was a JV producing Mustangs for Ford and Mazda 6's. The plant has a reputation for very good quality, and the Mustang alone won't drive enough sales to keep it efficient.

The Fusion and MKZ are produced in Hermosillo, which doesn't have the capacity to keep up with demand. Now that's not entirely bad, but it's not just the Fusion that stands to gain. Lincoln dealers have really pressing for more supply, and MKZ is the one model that is selling well.

I'm not sure about overtaking Camry. That wouldn't be my goal, but I could see it happening. Truth be told this segment is hotly contested with five world class vehicles. Accord, Altima, and Malibu are all taking a bite out of Camry's sales lead, and obviously Fusion is in that discussion as well.

Ford still has a full year of trying to fight back challenges in 1/2 ton trucks, before the new F-150 comes out. Having Fusion pushing Toyota in mid-size cars and hybrids might keep any margin losses on trucks from denting our profits.

Doug
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